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Fiscal Federalism and Long-Run Macroeconomic Performance

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Author Info

  • Lars P. Feld

    ()
    (Ruprecht-Karls-Universitat Heidelberg, Alfred Weber Institute for Economics)

  • Jan Schnellenbach

    ()
    (Ruprecht-Karls-Universitat Heidelberg, Alfred Weber Institute for Economics)

Abstract

In this paper, we offer both a broad survey of the literature on fiscal federalism and long-run economic performance, and a detailed report of some of our own recent studies in this field. We look at the difference between study types (cross-country versus single-country studies), and at the relevance of the broader institutional framework into which fiscal decentralization is embedded. We also look into structural change and intergovernmental transfers as a detailed mechanism through which federalism may have an impact on aggregate economic performance.It turns out that fiscal decentralization has no robust effect on growth, but the evidence hints at a positive effect on overall productivity, conditional on the broader institutional framework.

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Bibliographic Info

Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper1009.

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Length: 34 pages
Date of creation: 01 Feb 2010
Date of revision:
Handle: RePEc:ays:ispwps:paper1009

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Related research

Keywords: fiscal federalism; scal decentralization; growth; economic performances;

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Cited by:
  1. Ibrahim Ahmed Elbadawi & Raimundo Soto, 2013. "Fiscal Regimes In And Outside The Mena Region," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1350015-1-1.
  2. Diaz-Serrano, Luis & Rodríguez-Pose, Andrés, 2011. "Decentralization, Happiness, and the Perception of Institutions," CEPR Discussion Papers 8356, C.E.P.R. Discussion Papers.
  3. Libman, Alexander, 2009. "Constitutions, Regulations, and Taxes: Contradictions of Different Aspects of Decentralization," MPRA Paper 15854, University Library of Munich, Germany.
  4. Wang, Zhiguo & Ma, Liang, 2012. "New Development of Fiscal Decentralization in China," MPRA Paper 36918, University Library of Munich, Germany.
  5. Zareh Asatryan & Lars P. Feld, 2013. "Revisiting the Link between Growth and Federalism: A Bayesian Model Averaging Approach," CESifo Working Paper Series 4357, CESifo Group Munich.

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